Insurer Allianz has partnered with the National Insurance Brokers Association (NIBA) to publish a guide on building resilience as businesses face new challenges.

Having a resilient business is vital. It’s about creating a business that has the knowledge and understanding to react positively to adversity, and can change course swiftly based on market and global conditions. 

There has been no shortage of hurdles for businesses to overcome in recent years – including a global pandemic, unprecedented natural disasters, geopolitical strife, supply chain difficulties and the high interest rate environment. 

In the eighth issue of the NIBA Broker’s Guide, Allianz provides essential insights, tools and tips for brokers and their clients.

The guide covers everything from risks associated with new technologies and emerging property risks, to business interruption in plant, machinery and vehicles.

New technologies

As more brands embrace new technologies such as solar energy, lithium batteries and electric vehicles to reflect their commitment to the environment, fire safety has become an increasing problem.

For example, data from Australian fire departments shows more than 450 fires were linked to lithium-ion batteries in the 18 months leading up to February 2023. 

Basil Taylor, Manager, Technical at Allianz Risk Consultants, says the real hazard is misunderstanding what each individual business needs to move to a sustainable model. 

“If we’re going to do this net zero transition, what does that look like for my business when we think of turnover, supply chains, volume, and growth?” he says.

“And how can we do things smarter and differently, but at the same time, keep the business sustainable and profitable?”

Property 

In terms of property risks, Allianz claims analysis reveals that fire remains the largest single cause of business interruption and corporate insurance loss. Once again lithium batteries are a key concern.

Mr Taylor says rechargeable lithium-ion batteries are different from regular lithium batteries. The former are especially risky and their use calls for careful storage, maintenance, and supply chain management.  
  
“Educating yourself and your staff on safe use, charging, and storage is key, as is reviewing your business insurance coverage to deal with the risk,” he says.

Business interruption

When it comes to business interruption in the plants, machinery, and vehicles sector, supply chain issues that emerged in the Covid-19 pandemic remain at the forefront. This includes the vehicles required for the supply chain itself.

“It’s important to understand your client’s business and its business continuity plan,” says Kenji Hosaka, Risk Manager with Allianz. 

“So, if one supplier is out, then what can we do? And often we do have options to get alternative suppliers and alternative products.” 

Brokers can help clients minimise risk by negotiating long indemnity periods, which can offer businesses support when they need it most. 

The Brokers Guide content series combines Allianz expertise with industry insights to provide an essential resource for brokers to elevate their knowledge.

Download your copy of the latest guide here, or talk to your Allianz Account Manager about how you can help clients elevate their business resilience.

About Allianz Australia

Allianz Australia delivers a wide range of personal, commercial and corporate 
insurance products and services to more than 3 million policyholders. It also provides support for workers’ compensation insurance to about 24% of the top 200 ASX companies, making it one of the leading workers’ compensation insurers in Australia.

About NIBA

The National Insurance Brokers Association is the peak representative body for the intermediated insurance industry in Australia.